Inducement in Employment Law (Ontario): What Employees Need to Know

Inducement in employment law can significantly increase the severance pay you’re owed if you’re terminated in Ontario.

If an employer actively recruited you away from secure employment and later fires you, Ontario courts may treat that termination very differently — often resulting in much higher severance entitlements.

Below, we explain how inducement employment law in Ontario works, how courts assess it, and why it matters if you’ve lost your job.

What Is Inducement in Employment Law?

In Ontario employment law, inducement occurs when an employer persuades or recruits an employee to leave secure employment to accept a new job.

Inducement can include:

• Targeted recruitment
• Promises of long-term employment
• Assurances of job security
• Encouraging someone to leave a stable role

Why Inducement Matters in Ontario

If you were induced to join a company, Ontario courts may award you significantly more severance if you’re later terminated.

That’s because the law recognizes:

• You gave up job security
• You took a risk based on the employer’s representations
• The employer bears responsibility for that decision

As a result, inducement can:

• Increase reasonable notice periods
• Override short termination clauses
• Strengthen wrongful dismissal claims

How Ontario Courts Determine Inducement

There is no single test for inducement. Courts look at the entire recruitment relationship, including:

• Who initiated contact
• Whether you were employed at the time
• The employer’s promises or assurances
• Whether relocation or career sacrifice was involved
• How long you worked before being terminated

Does Inducement Still Apply If You Were on Probation?

Yes — in many cases.

In Ontario, there is no automatic probation period under employment law. If you were induced to join an employer and terminated early, the court may still award reasonable notice, even if your contract mentions probation.

Inducement can weaken or invalidate:

• Probation clauses
• Early termination limits
• Minimal notice provisions

Can an Employment Contract Cancel Inducement?

Sometimes — but often not.

Employers frequently argue that a written contract eliminates inducement claims. Ontario courts reject this argument if:

• The termination clause is unenforceable
• The clause fails to meet Employment Standards Act (ESA) minimums
• The contract wasn’t properly explained or accepted
• Inducement was substantial and ongoing

Inducement and Severance Pay in Ontario

Inducement can dramatically affect severance pay outcomes.

Employees who were induced may be entitled to:

• Common-law notice instead of minimum ESA pay
• Longer notice periods than similarly situated employees
• Compensation reflecting prior service and stability

In many cases, inducement pushes severance well beyond what employers initially offer.

Common Examples of Inducement

You may have an inducement claim if:

• A recruiter contacted you while you were employed
• You were promised “long-term” or “career” stability
• You left a secure role to join a new company
• You were terminated shortly after joining
• You relocated or turned down other opportunities

Inducement often exists even when employers deny it.

What If Your Employer Says Inducement Doesn’t Apply?

That’s common — and often wrong.

Employers routinely:

• Downplay recruitment efforts
• Rely on weak termination clauses
• Ignore prior employment stability

Ontario courts focus on what actually happened, not how the employer characterizes it.

What to Do If You Were Induced and Terminated

If you believe inducement applies:

1. Do not accept a severance offer immediately
2. Preserve recruitment emails and messages
3. Review your employment contract carefully
4. Get legal advice before signing anything

Speak to an Ontario Employment Lawyer About Inducement

Inducement is one of the most misunderstood — and valuable — concepts in Ontario employment law.

If you were recruited away from secure employment and later terminated, you may be entitled to far more severance than your employer suggests.

A proper review with an Ontario employment lawyer at Samfiru Tumarkin LLP can determine:

• Whether inducement applies
• Whether your contract is enforceable
• What severance you’re truly owed